Klub invests INR 10 crores in D2C firms ahead of summer sale on fast commerce platforms in India

• ByStartupStory     |    April 10, 2023

The top revenue-based financing platform in India, Klub, said today that it has invested INR 10 crores in direct-to-consumer firms to increase working capital ahead of the summer sale across fast commerce platforms. This includes financial commitments to organisations like Local Ferment Co., Papacream, NOTO Ice Cream, and Artinci.

With major quick commerce marketplaces like Swiggy, Instamart, Zepto, and Dunzo launching their summer season sales in the coming quarter, D2C brands selling summer-specific products like ice cream and cold drinks need working capital to secure inventory and use it to improve their performance marketing to generate more revenue during these sales.

Due to the early start of summer, sales of cold beverages have been surging for the past month. According to reports, sales of soft drinks and juices increased by 30–35% in February compared to the same month last year.

 

Ashni Shah, Co-founder and Director at NOTO Healthy Ice Cream said, “As we gear up for the summer season, we are focusing on leveraging our working capital to ensure we are well-prepared to meet the surge in demand. This includes launching new product lines, ensuring there’s enough inventory to keep up with the demand and expanding our delivery capabilities to be able to service existing plus new customers. We will also be running aggressive marketing campaigns both online and offline to ensure constant visibility. By strategically raising our working capital through Klub’s platform and allocating it ahead of these sales, we are confident in our ability to drive growth and continue to give our customers the perfect NOTO experience.”

However, according to RedSeer’s analysis, Q-commerce now has the capacity to serve 20 million Indian households, or just 7% of the market as a whole, demonstrating its untapped potential. The rise of the immediate market will receive a boost from the country’s continued increase in online consumer goods. The metro areas and Tier I regions are expected to contribute close to 50% of the growth.

Calling all entrepreneurs, investors and business owners! The wait is finally over. The 2nd edition of Startup Story B2B Connect is back with a bang – and this time, we’re taking it up a notch. With more startups, more investors and bigger opportunities than ever before, this is your chance to connect, collaborate and take your business to the next level. Get ready for an unforgettable networking experience that’s set to change the game. Stay tuned for all the exciting updates! Register Now Here.

Follow Startup Story